IFRIC D17.fm

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IFRIC Draft Interpretation D17 IFRS 2–Group and Treasury Share Transactions is published by the International Accounting Standards Board (IASB) for comment only. Comments on the draft Interpretation should be submitted in writing so as to be received by 18 July 2005. All responses will be put on the public record unless the respondent requests confidentiality. However, such requests will not normally be granted unless supported by good reason, such as commercial confidence. If commentators respond by fax or email, it would be helpful if they could also send a hard copy of their response by post. Comments should preferably be sent by email to: CommentLetters@iasb.org or addressed to: D17 Comment Letters International Accounting Standards Board 30 Cannon Street, London EC4M 6XH, United Kingdom Fax: +44 (0)20 7246 6411 The IASB, the International Accounting Standards Committee Foundation (IASCF), the authors and the publishers do not accept responsibility for loss caused to any person who acts or refrains from acting in reliance on the material in this publication, whether such loss is caused by negligence or otherwise. Copyright © 2005 IASCF ® All rights reserved. Copies of the draft Interpretation may be made for the purpose of preparing comments to be submitted to the IASB, provided such copies are for personal or intra-organisational use only and are not sold or disseminated and provided each copy acknowledges the IASCF’s copyright and sets out the IASB’s address in full. Otherwise, no part of this publication may be translated, reprinted or reproduced or utilised in any form either in whole or in part or by any electronic, mechanical or other means, now known or hereafter invented, including photocopying and recording, or in any information storage and retrieval system, without prior permission in writing from the IASCF. International Accounting Standards Board ® The IASB logo/‘Hexagon Device’, ‘eIFRS’, ‘IAS’, ‘IASB’, ‘IASC’, ‘IASCF’, ‘IASs’, ‘IFRIC’, ‘IFRS’, ‘IFRSs’, ‘International Accounting Standards’, ‘International Financial Reporting Standards’ and ‘SIC’ are Trade Marks of the IASCF. This draft Interpretation is available from www.iasb.org
INVITATION TO COMMENT DRAFT INTERPRETATION MAY 2005 The International Accounting Standards Board’s International Financial Reporting Interpretations Committee (IFRIC) invites comments on any aspect of this Draft Interpretation IFRS 2—Group and Treasury Share Transactions. It would particularly welcome comments on the question below. Comments are most helpful if they indicate the specific paragraph to which they relate, contain a clear rationale and, when applicable, provide a suggestion for alternative wording. Comments should be submitted in writing so as to be received no later than 18 July 2005. Question Paragraph 9 of the draft Interpretation proposes that share-based payment transactions in which a parent entity grants rights to its equity instruments * direct to a subsidiary entity’s employees should be accounted for as equity-settled transactions. Paragraph 11 proposes that, for transactions in which a subsidiary entity grants to its employees rights to equity instruments of its parent, the subsidiary entity should account for those transactions as cash-settled transactions. Therefore, in the subsidiary’s individual financial statements, the accounting treatment of transactions in which a subsidiary’s employees are granted rights to equity instruments of its parent would differ, depending on whether the parent or the subsidiary granted those rights to the subsidiary’s employees. This is because the IFRIC concluded that, in the former situation, the subsidiary has not incurred a liability to transfer cash or other assets of the entity to its employees, whereas it has incurred such a liability in the latter situation (being a liability to transfer equity instruments of its parent). Do you agree with these proposals? * References in paragraphs 9-11 of the draft Interpretation to equity instruments of the parent entity also include equity instruments of another entity in the same group. 3 © Copyright IASCF
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